DMP- Best way?

stu12345_2

i see you state cars as an asset, they are only an asset if they are sold. is the hp on the cars, are you in negative equity on them
it looks like you are, if you got the point where you could get rid of them for a much much cheaper cars for cash, you could clear the hp and almost be at the point where you have enough left per month to actually met the payments on your credit cards

that is what myself and wife did, we had £33000 in credit cards and loans and £23000 in hp on cars, but we were in positive equity.
sold cars , bought one very old one and had no more hp.

we then concentrated on our loans and credit cards in a payment plan.
we still owe £19000 on them,but getting rid of the hp on the cars helped us.

Lolly18

Thanks Grumpel.

yea I could do that. Like I said, I havent entered any form of DMP yet. So deciding which path to take aswell weather to self manage or do it through SC.

just in the process of switching banks to starling and having my wages paid into that. Then starting to set up DD for essentials one by one as read not to do the switch guarantee

stu12345_2

is there anything you bought with the £38000 in loans and credit cards that can be sold

Lolly18

Unfortunately not Stu 😞

Grumpelstiltskin

Lolly18 said:

Thanks Grumpel.

yea I could do that. Like I said, I havent entered any form of DMP yet. So deciding which path to take aswell weather to self manage or do it through SC.

just in the process of switching banks to starling and having my wages paid into that. Then starting to set up DD for essentials one by one as read not to do the switch guarantee

You are doing the right thing with switching your bank.  Just don't panic and jump into payments too soon. Take things slowly until you are happy with what you decide to do, keep asking questions if you are not sure of anything.

Lolly18

So iv today switched all my essentials DD to my new starling account, iv also switched my wages to be paid into the new account.

my loan and cc payments are  due 8th and 9th of April so just deciding weather to pay them in April and start in may or to just get on with it.

just feels so wrong to do it like this. Feels like a massive step in the wrong direction.

pogg000

No need to pay in Aptil

Grumpelstiltskin

You have to bite the bullet and don't pay any debts in April. OK as you say it seams wrong but it is the right thing to do.

Just don't panic, things will be easier than you think.

sourcrates

@Lolly18.

I know you are new to all of this, and its come as a shock to you, but you need to slow down, and understand the position you are in, you cannot go on like you have been doing, and debt management is the only realistic step for you to take.

All it requires from you is put yourself first, instead of your non essential debt, have a look at this thread, it will give you an insight on how you should manage this -

In Debt and Wannabe Debt Free? First Steps! — MoneySavingExpert Forum

I`d recommend you pay nothing for around 6 months, build up that emergency fund and allow your debts to default.

Lolly18

Thanks all,

reading the threads on this forum has been a massive help. The support from you guys is amazing.

I’ll go ahead and cancel my DD’s for April. Tomorrow I’m working on a brand new monthly budget to include my emergency saving.

ill update as I go!